When you create your own picture you can make the locomotive smaller within the 480x180 pixel canvas. Using Photoshop, GIMP, or a similar program you can play with the size of the locomotive within the boundaries of overall picture. If the locomotive is too large then the label will cover part of it on the controller.
Someone on here had figured out exactly how big to make the locomotive in order to avoid this issue.
For myself, it doesn't bother me. If it covers part of the locomotive picture I just leave it.
-Kevin